BILL NUMBER: SB 84	CHAPTERED  07/22/99

	CHAPTER   137
	FILED WITH SECRETARY OF STATE   JULY 22, 1999
	APPROVED BY GOVERNOR   JULY 21, 1999
	PASSED THE SENATE   JULY 8, 1999
	PASSED THE ASSEMBLY   JUNE 30, 1999
	AMENDED IN ASSEMBLY   APRIL 8, 1999
	AMENDED IN SENATE   MARCH 1, 1999
	AMENDED IN SENATE   JANUARY 28, 1999

INTRODUCED BY   Senators Costa and Poochigian
   (Coauthors:  Assembly Members Briggs, Florez, and Reyes)

                        DECEMBER 7, 1998

   An act to amend Section 7074 of, and to add Section 7074.5 to, the
Government Code, relating to enterprise zones, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 84, Costa.  Enterprise zones:  expansion areas.
   The Enterprise Zone Act provides for the designation of enterprise
zones by the Trade and Commerce Agency, according to specified
criteria, pursuant to which certain entities within each zone may
receive regulatory, tax, and other incentives for economic and
employment development and private investment.  An enterprise zone
located in a city or  the unincorporated area of a county may be
expanded into an adjacent city or cities if, among other things, the
agency finds that specified conditions exist.  Among those conditions
is that land included within the proposed expansion area must be
zoned for industrial or commercial use.
   This bill would authorize the inclusion of nonindustrial or
noncommercial land under certain conditions.  It would, in the case
of the Counties of Fresno and Kern, authorize the expansion of an
enterprise zone located in a city or in the unincorporated area of
the county into an adjacent unincorporated area of the county.
  This bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Counties of Fresno and Kern have exceptionally high rates
of unemployment.
   (b) The two counties, which are top agricultural producers in the
state, continue to experience difficulties in diversifying their
economies.
   (c) The two counties have unincorporated areas adjacent to
existing enterprise zones and otherwise may meet the statutory
criteria for expansion of those enterprise zones.
  SEC. 2.  Section 7074 of the Government Code is amended to read:
   7074.  (a) In the case of any enterprise zone, including an
enterprise zone formerly designated as an enterprise zone pursuant to
Chapter 12.8 (commencing with Section 7070) as it read prior to
January 1, 1997, or as a program area pursuant to Chapter 12.9
(commencing with Section 7080) as it read prior to January 1, 1997, a
city or county, or city and county may propose that the enterprise
zone be expanded by 15 percent to include definitive boundaries that
are contiguous to the enterprise zone.  The agency may approve that
expansion based upon the criterion specified in subdivision (b) of
Section 7073.
   (b) An enterprise zone that is located in the unincorporated area
of a county may propose to use eligible expansion allotment to expand
into an adjacent city or cities pursuant to this section if the
agency finds that all of the following conditions exist:
   (1) The governing body of the local agency with jurisdiction over
the existing enterprise zone and the governing body of the local
agency with jurisdiction over the proposed expansion area each
approve the expansion by adoption of an ordinance or resolution.
   (2) (A) Land included within the proposed expansion is zoned for
industrial or commercial use.
   (B) An expansion area may contain noncommercial or nonindustrial
land only if that land is a right-of-way and is needed to meet the
requirement for a contiguous expansion between an existing enterprise
zone and a proposed expansion area.
   (3) Basic infrastructure, including, but not limited to, gas,
water, electrical service, and sewer systems, is available to the
area that would be included in the expansion.
   (4) The expansion area is contiguous to the existing enterprise
zone.
   (c) (1) Except as otherwise provided in paragraph (2), in no event
shall an enterprise zone be permitted to expand more than 15 percent
in size from its size on the date of original designation, including
any expansion authorized pursuant to Chapter 12.8 (commencing with
Section 7070), or Chapter 12.9 (commencing with Section 7080), as
those chapters read prior to January 1, 1997.
   (2) If an enterprise zone, on the date of original designation, is
no greater than 13 square miles, it may be permitted to expand up to
20 percent in size from its size on the date of original
designation.
  SEC. 3.  Section 7074.5 is added to the Government Code, to read:
   7074.5.  In the case of the Counties of Fresno and Kern, an
enterprise zone that is located in a city or in the unincorporated
area of the county may propose to use eligible expansion allotment to
expand into an adjacent city or cities, or an adjacent
unincorporated area of the county, subject to the conditions
specified in Section 7074.
  SEC. 4.  Due to the unique circumstances of the economies of the
Counties of Fresno and Kern, and of the configuration of the
enterprise zones existing in those counties, the Legislature hereby
finds and declares that a general statute cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution.  Therefore, the special legislation contained in
Section 3 of this act is necessarily applicable only to the Counties
of Fresno and Kern.
  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order that local agencies may more efficiently expand
enterprise zones within their jurisdictions at the earliest possible
time, it is necessary that this act take effect immediately.
